While at the airport
today waiting for a flight, I ran into a friend and
neighbor of mine. He was catching a flight to Iraq via
North Carolina (he has to report there before he is
transferred to Iraq). We chatted a bit, and he updated
me on his foreclosure situation. He and his wife are
going through foreclosure at the moment (as are most of
my neighbors), and they are a little bit ahead of me.
Their last mortgage payment was around July 2007. It now
being July 2008, they have been able to live
mortgage-payment free
for a year now. He went on to tell me that they have
received several foreclosure hearing dates, but they
keep getting postponed. This is Escambia County Florida.
Admittedly, Escambia
County has a high number of foreclosures to process -
they have three (3) of mine to process. Of course, the
government's idea of help has probably also contributed
to the postponements. I have read several articles where
government agencies have asked banks to grant thirty
(30) day extensions on foreclosure proceedings in hopes
of helping people stay in their homes. I think, in all
actuality, it only helps people stay in their homes
another 30 days.
Apparently at the
hearing, options are discussed; and the owner is given
thirty days to vacate the property or catch up the
payments. While I have been served foreclosure papers on
all three of my properties, I have not received
foreclosure hearing dates for any of them; and given my
neighbor's lengthy foreclosure process, I may be holding
these properties for another six or seven months or
longer. That is a long time for a foreclosure process!
There are good things
from this and bad things from this - more bad than good.
While the properties are still in my name, I have to
maintain the properties as far as utilities and lawn
maintenance and condo and association dues (although I
have stopped paying condo and association dues). That
means that I am maintaining utilities on four (4)
properties - the two condos, the golf course house and
the apartment that I have moved into as a rental. The
good thing is that I have more time to try and sell the
properties. Of course, the bad thing about that is nothing in the area is selling for even half price.
I do not think that I
have any control over the foreclosure hearing dates. The
courts set those dates, and the courts do not solicit my
opinion. I could try for deeds-in-lieu, but I am not so
sure that I should do that. While the properties are
still in foreclosure, the banks are unable to give me a
1099 on forgiven debt (if they eventually do forgive the
debt). That gives me another year if the foreclosures
are not completed in 2008 to consider bankruptcy because
a huge federal income tax bill on the forgiven debt
maybe the only thing that truly pushes me into
foreclosure (although I am still considering taking the
tax bill and trying to negotiate it down with the IRS).
Also, this is a
Presidential election year. The politicians in D.C. are
under tremendous pressure to impress their constituents.
That might just force them into passing some new laws
that just might be in favor of the individual instead of
the banks (Vote Democrat!). Plus, I read online that Freddie Mac and
Fannie Mae - the nation's two largest mortgage
organizations - are in financial trouble and may need a
government bailout (very similar to Bear Stearns on which
I made money because I bought a bunch of Bear Stearns
stock right after they announced the bailout!). The U.S. economy might eventually
get so bad that nobody really cares about my stupid
mortgage debt (and I do not believe that we are too far
away from what may be our version of the Great
Depression for the 21st century).
So in conclusion, I
apparently have a lot more time in foreclosure before I
ever actually lose these properties and all of the pros
and cons that go along with that. As soon as I do get my
foreclosure hearing notice, I will let you know.
Subscribe to my blog on the comments page for an update.
Take care, and let me know what you think; and if you
have been through this already, how did it turn out?
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